TMI Blog2011 (8) TMI 1290X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the assessee is on record. So we proceeded to decide the appeal after hearing the ld. DR and perusal of the written submission. 3. Brief facts of the case are that the assessee filed its return of income declaring total income at ₹ 2,02,450/-. Scrutiny assessment u/s 143(3) was completed determining total income at ₹ 21,16,497/- making an addition on account of labour payments of ₹ 18,45,444 and addition on account of work in progress of ₹ 56,451/-. The assessee went in appeal before ld. CIT(A) against this addition. 4. The ld. CIT(A) granted relief of ₹ 15,06,677/- to the assessee and sustained an addition of ₹ 4,07,367/- on account of disallowance of labour expenses. In further appeal, Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear from the above order that the AO had charged interest u/s 234B from 01.04.1997 to 28.11.2008 i.e. from the first day of April next following the financial year up to the date of order u/s 143(3) r.w.s. 254. Aggrieved by this order of the AO the assessee preferred an appeal before the ld. CIT(A) who vide his order dated 25.5.2009 deleted the addition on account of work in progress and sustained the levy of interest u/s 234B but as regards the period of charging interest thereof the ld. CIT(A) held that the same can be charged only upto the date of the original assessment order passed u/s 143(3) and not upto the date 28.11.2008 i.e. the date of the order passed in pursuance of the order of the Tribunal by observing as under :- On g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Settlement Commission Or s. (2005) 312 ITR 115 (Guj). 4. The South Indian Bank Ltd. vs. CIT (2010) 325 ITR 517 (Ker). 8. The assessee on the other hand, in its written submission has relied on the order of the ld. CIT(A) and also on the following case law:- Freightship Consultants (P) Ltd. vs. ITO (2008) 110 ITD 377 (Del). following which the ld. CIT(A) has given relief to the assessee. 9. After hearing both the parties and perusing the record, we find that the section 234B reads as under :- 234B(1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncreased, the AO shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly; (ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded. It is clear from the above that sub-section (4) of section 234B only says that interest payable u/s 234B(1) shall be increased or reduced but it has not specified the period for which it will be levied, since the period already stands specified in section 234B (1) reproduced earlier. It is further noted that assessee s case falls u/s 234B(1) and not u/s 234(B)(3) as there is regular assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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